Telehop Announces Positive Year End Results for 2013

TORONTO--()--Telehop Communications Inc. (“Telehop” or the “Company”), (TSX-V: HOP) today announced its financial performance during the fourth quarter and year ended December 31, 2013.

Telehop has continued to deliver a positive Adjusted EBITDA for the year of $426,336 compared to $191,969 in 2012. EBITDA for the year was $277,306 after considering transaction costs of $149,030 incurred during the year related to acquisitions.

“We remain on a new course for the company while delivering strong financial results and continued operational improvements. We have transitioned from a traditional long distance provider into a company expanding into higher growth markets such as wireless and business services.” said Rajiv Jagota, President CEO, Telehop.

Company highlights during the year include:

  • Entered into a purchase agreement to acquire shares and assets of G3 Telecom long distance and wireless business that was successfully completed February 28, 2014.
  • Growth of the TELUS #100 dial around wireless service that is available to millions of TELUS wireless customers.
  • Development of our new Telehop Business Services to offer a high quality, cost efficient solution to business customers.
  • Expansion of online marketing initiatives focused on the residential market.

FINANCIAL OVERVIEW

Consolidated Highlights   Three months ended

December 31

  Twelve months ended

December 31

  2013   2012 2013   2012
Revenue $2,006,047 $2,094,420 $8,319,885 $9,023,874
Gross margin $842,229 $914,242 $3,535,971 $4,021,465
Gross margin % 42.0% 43.7% 42.5% 44.6%
EBITDA1 $1,045 $128,493 $277,306 $191,649
Adjusted EBITDA1 $150,075 $128,493 $426,336 $191,649
Net income (loss) $(44,651) $84,179 $89,122 $44,449
Earnings (loss) per share - basic $(0.002) $0.004 $0.004 $0.002

1 We define EBITDA as earnings before interest costs, taxes, depreciation and amortization and Adjusted EBITDA as earnings before interest costs, taxes, depreciation, amortization and acquisition transaction costs. EBITDA and Adjusted EBITDA which are both non-GAAP financial measure, is a measure used in to assist in understanding and comparing operating results that exclude costs incurred related to the acquisition transactions which are expensed as incurred and not capitalized.. EBITDA and Adjusted EBITDA is reviewed regularly by management and our Board of Directors in assessing performance and in making decisions regarding the ongoing operations of the business and the ability to generate cash flows. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. EBITDA and Adjusted EBITDA are not measures of financial performance nor do they have a standardized meanings under IFRS. In evaluating these measures, investors should consider that the methodology applied in calculating such measures may differ among companies and analysts. We have reconciled EBITDA and Adjusted EBITDA to its most comparable measure calculated in accordance with IFRS, being net income (loss) in the tables below.
Below is a reconciliation of “EBITDA” and “Adjusted EBITDA” to net income (loss) for the periods presented:

EBITDA Reconciliation   Three months ended

December 31

  Twelve months ended

December 31

  2013   2012 2013   2012
Net income (loss) $(44,651) $84,179 $89,122 $44,449
Interest costs 1,239 841 34,237 33,233
Income taxes - - - -
Amortization 44,457 43,473 153,947 113,967
EBITDA1 1,045 128,493 277,306 191,649
Acquisition transaction costs 149,030 - 149,030 -
Adjusted EBITDA1 150,075 128,493 426,336 191,649


A complete financial reporting package, including the December 31, 2013 Audited Annual Consolidated Financial Statements and Notes to the Financial Statements and MD&A, is available at our corporate website (www.telehop.com), at SEDAR website (www.sedar.com) or via email to investorinquiry@telehop.com or via phone at 416-499-5463.

DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained herein regarding the Company and its plans constitute “forward-looking statements” within the meaning of Canadian securities laws. By their nature, forward-looking statements require the Company to make assumptions and are subject to inherent risks and uncertainties. The forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any performance or achievement expressed or implied by such forward-looking statements. We direct you to our Company’s Management’s Discussion and Analysis filed for the period ended December 31, 2013.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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About Telehop

Telehop Communications Inc. (TSX-V: HOP) was founded and headquartered in Toronto, Ontario in 1993, and has grown into one of the largest alternative telecommunications providers to both residential and business customers.

Telehop originally began offering residential and business two-way monthly 'flat rate' calling services in the Greater Toronto area between communities where a call would otherwise be a long distance call. In 1994, Telehop became one of Canada's few Equal Access Long Distance Providers, allowing it to offer its customers full service long distance calling globally at significantly lower rates. The Canadian Radio-television and Telecommunications Commission ("CRTC") has licensed Telehop as a Class "A" telecommunications carrier.

Telehop's dedication and priority is providing residential and businesses with exceptional phone services at competitive rates without sacrificing quality service.

Contacts

Telehop Communications Inc.
Mr. Rajiv Jagota, (416) 499-5463
President and CEO
rjagota@telehop.com

Release Summary

Telehop announces positive 2014 year end financial results.

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Contacts

Telehop Communications Inc.
Mr. Rajiv Jagota, (416) 499-5463
President and CEO
rjagota@telehop.com